02.09.202516:06:11UTC+00European Stocks Close Lower

On Tuesday, European stocks experienced a significant decline, mirroring a widespread sell-off in global equities due to the escalation of long-term borrowing costs. This trend unfolded as markets analyzed recent inflation data. In the Eurozone, the annual inflation rate edged up to 2.1%, with the core rate remaining stable, marking a halt in its three-month decline. This stability has heightened worries about persistent inflation in the services sector. Concurrently, a new record was set for European bond issuance within a single session, driven by substantial sales in the UK and Italy, which further strained long-term securities. The prevailing tight credit conditions have adversely impacted the banking sector heavyweights, leading to declines of over 1.5% in shares of UniCredit, Santander, and Intesa Sanpaolo. The tech sector also faced significant losses, similar to the US, amid growing apprehensions about overvaluations in companies related to artificial intelligence. ASML saw its shares fall by 3%, whereas Infineon experienced a 4.5% drop. On a brighter note, Ferrari's shares rose by 2.3% and Schneider Electric gained 0.4%, following upgrades from Deutsche Bank.